Argus Reaffirms Buy Rating for American Tower (NYSE:AMT)

Key Points

• Argus reaffirmed its Buy rating on American Tower and set a $210 price target, implying 6.93% upside from the previous close. Analysts’ consensus is Moderate Buy, with an average target of $216.11.
• American Tower’s latest quarter matched earnings expectations at $1.64 per share and beat revenue estimates, reporting $2.79 billion in revenue, up 2.5% year over year.
• The REIT’s board authorized a $2 billion share buyback, allowing repurchases through open-market purchases.

American Tower (NYSE:AMT - Get Free Report)'s stock had its "buy" rating restated by Argus in a research report issued on Thursday, Benzinga reports. They presently have a $210.00 price target on the real estate investment trust's stock. Argus's target price would indicate a potential upside of 6.93% from the company's previous close.

AMT has been the topic of several other reports. Barclays raised their target price on American Tower from $198.00 to $199.00 and gave the stock an "overweight" rating in a research report on Wednesday, September 30th. TD Cowen upped their price target on shares of American Tower from $225.00 to $227.00 and gave the company a "buy" rating in a research report on Wednesday, July 29th. JPMorgan Chase & Co. lowered their price objective on shares of American Tower from $240.00 to $230.00 and set an "overweight" rating on the stock in a research note on Wednesday, October 28th. BMO Capital Markets raised their price objective on shares of American Tower from $190.00 to $195.00 and gave the stock a "market perform" rating in a report on Wednesday, July 29th. Finally, Mizuho set a $208.00 target price on shares of American Tower in a research report on Thursday, August 20th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, American Tower presently has an average rating of "Moderate Buy" and an average price target of $216.11.

American Tower Price Performance

NYSE AMT opened at $196.38 on Thursday. The stock has a market capitalization of $91.51 billion, a price-to-earnings ratio of 27.49, a PEG ratio of 3.38 and a beta of 0.85. American Tower has a 1-year low of $160.06 and a 1-year high of $202.50. The company has a debt-to-equity ratio of 3.30, a current ratio of 0.51 and a quick ratio of 0.51. The business's fifty day moving average price is $176.60 and its 200-day moving average price is $177.54.

American Tower (NYSE:AMT - Get Free Report) last issued its quarterly earnings data on Tuesday, October 27th. The real estate investment trust reported $1.64 EPS for the quarter, hitting the consensus estimate of $1.64. American Tower had a return on equity of 32.71% and a net margin of 30.10%. The company had revenue of $2.79 billion during the quarter, compared to analyst estimates of $2.76 billion. During the same quarter in the previous year, the company posted $2.78 earnings per share. American Tower's revenue was up 2.5% compared to the same quarter last year. On average, equities analysts predict that American Tower will post 10.80 earnings per share for the current year.

American Tower announced that its board has initiated a stock buyback plan on Tuesday, October 27th that authorizes the company to repurchase $2 billion in outstanding shares. This buyback authorization authorizes the real estate investment trust to purchase shares of its stock through open market purchases. Share buyback plans are generally an indication that the company's board of directors believes its stock is undervalued.

Insider Transactions at American Tower

In related news, Director Rajesh Kalathur purchased 2,829 shares of American Tower stock in a transaction on Friday, August 21st. The stock was acquired at an average price of $177.00 per share, for a total transaction of $500,733.00. Following the completion of the transaction, the director directly owned 7,765 shares in the company, valued at $1,374,405. This represents a 57.31% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Ruth Dowling sold 952 shares of the firm's stock in a transaction dated Thursday, October 29th. The stock was sold at an average price of $185.81, for a total value of $176,891.12. Following the completion of the transaction, the executive vice president directly owned 26,133 shares in the company, valued at $4,855,772.73. This trade represents a 3.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.08% of the company's stock.

Hedge Funds Weigh In On American Tower

Hedge funds have recently modified their holdings of the company. Bernzott Capital Advisors grew its holdings in American Tower by 29.3% in the 1st quarter. Bernzott Capital Advisors now owns 42,161 shares of the real estate investment trust's stock worth $7,276,000 after buying an additional 9,556 shares in the last quarter. Sound Income Strategies LLC raised its stake in American Tower by 14.5% during the 3rd quarter. Sound Income Strategies LLC now owns 118,811 shares of the real estate investment trust's stock valued at $19,809,000 after acquiring an additional 15,083 shares in the last quarter. BIP Wealth LLC acquired a new position in American Tower during the 2nd quarter worth $1,004,000. Groupe la Francaise boosted its position in American Tower by 319.0% during the 2nd quarter. Groupe la Francaise now owns 33,505 shares of the real estate investment trust's stock worth $5,481,000 after acquiring an additional 25,508 shares during the period. Finally, Kingsview Wealth Management LLC acquired a new position in American Tower during the 2nd quarter worth $3,373,000. 92.69% of the stock is currently owned by institutional investors.

American Tower Company Profile

American Tower Corporation NYSE: AMT is a real estate investment trust that owns, operates and develops wireless communications infrastructure. Its portfolio primarily includes communications towers, rooftop sites, distributed antenna systems and other infrastructure used by wireless carriers, broadcasters, governments and businesses to support voice, data and video communications.

The company leases space on its sites to multiple customers, allowing them to install antennas and related equipment without building and maintaining individual tower locations.

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